The emergence of innovative data analytics technologies has the potential to truly revolutionise audit. But are companies ready to fully embrace a new way of working? What are the true benefits and challenges? And how will audit transform over the next 20 years? Our audit experts share their views.
Auditors are understandably excited about the potential of data and analytics to change what we offer and how we offer it. But in the race to reach the promised land, we should remember that most client IT systems have not kept pace with our new D&A tools. Until they are, the full potential of D&A is some way off.
Data and analytics (D&A) will change the focus of the audit process by removing virtually all transactional work and much of the effort in assessing key audit judgements. Auditing will always be about evaluating financial statements but with a reduction in process work, more time can be spent on business risks and the related consequences.
Auditors must understand and respond to risk in the audit. Data and analytics (D&A) provides a new lens through which auditors can consider risk, and provide deeper insight to clients for their own consideration of risk and, ultimately, strategy.
D&A is about creating a better quality and more insightful audit. That doesn't mean it is necessarily more efficient or a panacea for all audit risk.